Arab states agree to give Palestine millions of dollars

In response to Israel withholding funds from Palestine, Arab states step in to offer a "financial safety net".

Following Israel's announcement that they would withhold tax payments from the Palestinian Authority (PA), Arab states have agreed to provide the PA with US $100 million a month as a "financial safety net."

Mahmoud Abbas's government have been facing a severe economic crisis in the West Bank for several years but the tax move by Israel came only after Palestine was succesful in their UN bid for "non-member" statehood last month. Many saw the withholding of funds as revenge for the PA's success at the UN.

On Sunday, Arab foreign ministers met in Doha to discuss how to implement the monthly payments to Palestine. Arab League Secretary-General Nabil Elaraby, told Reuters that:

"The mechanism is that the chair of the committee (Qatar) and the secretary-general will contact each country with the exact amount they have to pay,"

"I said I want an answer in 15 days," he added.

Last Thursday, the Palestinian cabinet said they needed $240 million per month to cover the hole left by the Israel tax revenue and donors reneging on promised funds.